Gap

A gap is a sudden jump in price where no trading occurred between two consecutive candles. On a chart, it appears as an empty space — the new candle opens significantly higher or lower than the previous candle's close. In forex, gaps are relatively rare during the trading week because the market runs 24/5, but they commonly appear at the Sunday market open.

Weekend gaps happen when significant events occur while the market is closed — a surprise election result, a geopolitical crisis, or an unexpected central bank announcement. The price "gaps" to reflect the new information when trading resumes. These gaps can work for or against you, which is one reason many traders close positions before the weekend.

There's a well-known tendency for gaps to "fill" — meaning price often retraces back to the pre-gap level before continuing its move. Gap-fill strategies attempt to profit from this behavior. However, not all gaps fill quickly, and some never fill at all, so treating gap fills as guaranteed would be a mistake.